AES in default under $600 million credit agreement because of restatements

JaredA. Favole

AES Corp.
AES, +0.68%
said on Monday that it is in default under its $600 million credit agreement because of previously announced financial restatements.

As reported in February, the Arlington, Va., energy company found errors in its financial statements relating to accounting for derivatives, capitalization, income tax expense and share-based compensation, including stock options.

The restatements forced the company to delay filing its 2006 annual report.

The company said in a filing on Monday with the Securities and Exchange Commission that it will seek a waiver of the default from its credit lenders. AES said it can't borrow additional funds under the credit facility before obtaining a waiver.

The company said $200 million of the debt under the credit pact will be classified as current on the balance sheet as of Dec. 31, 2006.

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